Retailers said the Reserve Bank of Australia‘s decision to hold the cash rate at 4.35 per cent will be of little encouragement to the industry as inflationary pressures still persist.
“This decision will come as cold comfort to many retailers who may have been fearing a cash-rate increase,” said Paul Zahra, CEO of the Australian Retailers Association (ARA).
“Cost-of-living pressures continue to impact the spending habits of Australians, with many households feeling the pinch.”
Zahra called on the government to provide measures to ensure that Australia’s $420 billion retail economy will flourish.
“It’s essential that retailers, both small and large, have the confidence to continue investing in their businesses over coming months,” said Zahra.
According to RBA data, inflation stood at 3.5 per cent in the 12 months to July, down from a 3.8 per cent acceleration in the 12 months to June.
The RBA said that while headline inflation is anticipated to decline further temporarily due to federal and state cost of living relief, it is not expected to return sustainably to target until 2026.
